Banks were in demand, both on the prospects for positive updates during the current reporting season and on reports that the government might ease bank liquidity rules, potentially saving them many millions of pounds

Only Barclays and HSBC managed to buck a downward trend as leading shares slumped to their lowest level for two months. Fears that Portugal or Spain could be next to seek financial aid grew throughout the day

As leading shares took heart from better than expected Chinese data and the weekend's agreement on new banking rules, one of the standout performers was Prudential, following reports a group of Chinese billionaires could be mulling a break-up bid

With the London market falling sharply for the fourth day running on UK election jitters and continuing Greek worries, one of the biggest losers in the leading index was hit for a completely different reason

Mining and financial shares led the way as the FTSE 100 surged to an 18 month high, helped by a return of investors' appetite for risk, hopes for a solution to Greece's debt problems and better than expected US jobless figures

Insurers have recovered some ground after their recent falls, helping leading shares to their third successive rise despite uncertainty over a Greek bailout and downbeat comments from UK Federal Reserve chairman Ben Bernanke